[lbo-talk] Socialism ascendant?

boddi satva lbo.boddi at gmail.com
Thu Sep 18 14:11:43 PDT 2008


Obviously I don't WANT in to be fascism, folks, but with this crowd one must always speak to the dark possibilities of American Empire.

Looks like Paulson is floating the idea of an Res. Trust. Corp., but the size of it will be breathtaking. For it to work, the back of my envelope suggests that we are talking about an institution that will have to be able to handle $3 TRILLION in liabilities. And it will have to re-organize the mortgage banking system from the individual borrower all the way to a regulated exchange to handle the secondary market.

It's a great opportunity, actually, and only the Bush Administration could fuck up so bad as to require this.

It's incredible. These people have no choice but engage in what they openly call "socialism".

I got news for Redmond's vaunted sovereign wealth funds, too: America is going to have to write down $11 Trillion in mortgage debt by at least 20% - minimum. And you own a lot of it.

And you need every one of those little dollars you have for your own problems.

On Thu, Sep 18, 2008 at 10:19 AM, Bill O'Connor <billyoc at gmail.com> wrote:


> "boddi satva" <lbo.boddi at gmail.com> writes:
>
> > The answer may well be that capitalism as we understand it cannot survive
> at
> > the present level of capital efficiency. The financial system will have
> to
> > be converted to a GSE model.
> >
> > I guess such a model could be controlled by fascists instead of
> socialists,
> > but either way, this is absolutely different this time.
>
> I could also be temporary again this time, like the Resolution Trust
> Corp. in the '80s, rather than some sort of Sovereign Wealth Fund.
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk
>

-- peace,

boddi

http://financialroadtosocialism.blogspot.com/



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